Oracle Corporation (ORCL)
Return on equity (ROE)
| May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 12,443,000 | 12,160,000 | 11,625,000 | 10,977,000 | 10,468,000 | 10,643,000 | 10,138,000 | 9,376,000 | 8,504,000 | 8,374,000 | 8,797,000 | 5,809,000 | 6,718,000 | 7,562,000 | 10,264,000 | 13,953,000 | 13,747,000 | 12,830,000 | 10,380,000 | 10,249,000 |
| Total stockholders’ equity | US$ in thousands | 20,969,000 | 16,730,000 | 13,746,000 | 10,816,000 | 8,704,000 | 5,623,000 | 4,378,000 | 2,841,000 | 1,556,000 | -1,912,000 | -3,776,000 | -5,449,000 | -5,768,000 | -8,211,000 | -9,658,000 | -1,541,000 | 5,952,000 | 9,637,000 | 8,616,000 | 10,140,000 |
| ROE | 59.34% | 72.68% | 84.57% | 101.49% | 120.27% | 189.28% | 231.57% | 330.02% | 546.53% | — | — | — | — | — | — | — | 230.96% | 133.13% | 120.47% | 101.07% |
May 31, 2025 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $12,443,000K ÷ $20,969,000K
= 59.34%
The provided data indicates that Oracle Corporation's return on equity (ROE) experienced significant fluctuations over the observed periods. Initially, as of August 31, 2020, the ROE stood at approximately 101.07%, reflecting a high level of profitability relative to shareholders’ equity. This upward trend continued, reaching a peak of around 230.96% by May 31, 2021, suggesting a period of very strong profitability and efficient use of equity capital.
However, subsequent periods show a shift in this trend, with reporting gaps from August 31, 2021, through to February 28, 2023, indicating either a lack of reported data or significant fluctuations not captured within the provided dataset. Notably, a substantial spike is observed on May 31, 2023, where the ROE surged to approximately 546.53%, well above prior levels, signifying an exceptional period of profitability which could be attributable to extraordinary items, strategic transactions, or accounting adjustments.
Following this peak, the ROE experienced a decline but remained substantial, with figures of approximately 330.02% on August 31, 2023, and 231.57% on November 30, 2023. The trend continued downward through subsequent periods, with the ROE decreasing to approximately 189.28% as of February 29, 2024, then further declining to around 120.27% on May 31, 2024, and approaching through August 2024 to about 101.49%. The downward trajectory extends into the later dates, with values diminishing to approximately 84.57% on November 30, 2024, and continuing to decline to roughly 72.68% on February 28, 2025, and approximately 59.34% by May 31, 2025.
Overall, the data depicts a pattern of extremely high ROE figures during certain periods, especially in early 2021 and mid-2023, followed by a notable downward trend in subsequent periods, which suggests the normalization of profitability levels over time or the impact of adjustments in financial reporting. The high ROE in early periods points to significant leverage, exceptional earnings, or strategic financial actions, whereas the more recent figures reflect a moderation towards more sustainable, albeit lower, profitability ratios.
Peer comparison
May 31, 2025